Financial Performance - The company's revenue for the first half of 2023 decreased by approximately 43.3% compared to the same period in 2022, with net profit declining by about 21.6%[10]. - The total revenue for the first half of 2023 was RMB 144.2 million, down from RMB 254.5 million in the same period last year[15]. - Net profit decreased by 21.6% to RMB 31.0 million in the first half of 2023, while net profit margin increased to 21.5%[34]. - Gross profit for the same period was RMB 51,576,000, down 32.6% from RMB 76,460,000 in 2022[99]. - The company reported a total comprehensive income of RMB 30,588,000 for the period, compared to RMB 40,156,000 in 2022, a decrease of 23.8%[100]. - Basic and diluted earnings per share for the period were RMB 2.20, down from RMB 2.82 in the previous year, representing a decrease of 22.0%[100]. - The company reported a net profit of RMB 30,820 thousand for the six months ended June 30, 2023, compared to RMB 39,491 thousand for the same period in 2022, indicating a decrease of about 22.0%[109]. - The total comprehensive income for the period was RMB 30,406 thousand, down from RMB 40,108 thousand in the previous year, reflecting a decline of approximately 24.3%[109]. Revenue Breakdown - Revenue from cleanroom wall and ceiling systems dropped by approximately RMB 105.7 million (or 44.8%), primarily due to delays in projects in China caused by US-China trade tensions[16]. - Revenue from cleanroom equipment increased by RMB 4.2 million or 74.0% in the first half of 2023 compared to the same period in 2022, primarily due to two major contracts in Malaysia and Portugal[19]. - Revenue from supporting businesses decreased by RMB 8.8 million or 69.3% in the first half of 2023, attributed to delays in contract delivery[20]. - Revenue from cleanroom wall and ceiling systems in China amounted to RMB 8.9 million, accounting for 6.8% of total revenue from this segment in the first half of 2023[21]. - Revenue from China decreased by RMB 74.9 million or 48.4% in the first half of 2023, mainly due to reduced revenue from cleanroom wall and ceiling systems[23]. - Revenue from cleanroom projects was RMB 68,809,000, down 54.8% from RMB 152,120,000 in the previous year[123]. - Revenue from product sales was RMB 75,348,000, a decrease of 26.4% compared to RMB 102,349,000 in the same period last year[123]. - Revenue from external customers in mainland China (excluding Hong Kong) was RMB 79,893,000, down 48.3% from RMB 154,777,000 in 2022[127]. Strategic Developments - The company has acquired a plot of land of approximately 16,056 square meters in Malaysia to build a new production facility, with full production now expected to commence in Q3 2024[11]. - Major contracts secured in the first half of 2023 include a contract in Malaysia worth RMB 31.7 million, accounting for 24.3% of total revenue from cleanroom wall and ceiling systems[17]. - The company remains cautiously optimistic about future prospects, particularly in Southeast Asia, anticipating continued investment in the semiconductor industry and data centers[12]. - The company is actively seeking suitable properties in China for expansion, while currently renting temporary facilities[11]. - The company plans to reallocate funds originally intended for expanding and renovating production facilities in China to expanding production facilities in Malaysia[55]. Cash Flow and Financial Position - As of June 30, 2023, cash and cash equivalents were RMB 132.8 million, down from RMB 160.1 million on December 31, 2022, primarily due to dividend payments and bank loan repayments[42]. - Cash generated from operating activities was RMB 8,706 thousand for the six months ended June 30, 2023, a decrease from RMB 16,246 thousand in the same period of 2022[112]. - The company paid dividends totaling RMB 14,341 thousand during the first half of 2023, compared to RMB 7,762 thousand in the same period of 2022, representing an increase of approximately 84.0%[114]. - The company’s cash and cash equivalents decreased to RMB 132,849 thousand as of June 30, 2023, from RMB 160,084 thousand at the beginning of the period, a decline of about 17.0%[114]. - The company’s total liabilities decreased to RMB 1,319 thousand as of June 30, 2023, from RMB 1,137 thousand at the beginning of the period, indicating a slight increase of about 16.0%[109]. Shareholder Information - As of June 30, 2023, Mr. Ng Yew Sum holds 338,428,550 shares, representing approximately 24.17% of the company's issued share capital[62]. - Major shareholder Yap Fui Lee also holds 338,428,550 shares, equivalent to 24.17% of the issued share capital, as a spouse interest[64]. - Francis Chia Mong Tet holds 150,773,100 shares, accounting for approximately 10.76% of the company's issued share capital[64]. - DBS Trustee Limited, as a trustee, holds 143,873,100 shares, which is about 10.27% of the issued share capital[64]. - Douglas Frederick Bockmiller holds 62,258,700 shares, representing approximately 4.45% of the company's issued share capital[64]. - The company has a significant concentration of ownership among its major shareholders, with the top five holding over 50% of the issued share capital[64]. Corporate Governance - The company is committed to maintaining high corporate governance standards and has adopted the principles and code provisions of the Corporate Governance Code as a basis for its corporate governance practices[83]. - The audit committee, composed of three independent non-executive directors, reviewed the unaudited consolidated interim results for the six months ended June 30, 2023[89]. - The company has not disclosed any changes in director information that require disclosure under the listing rules since the date of the annual report[81]. - The company has published its interim report for the six months ended June 30, 2023, in compliance with the relevant laws and regulations[92]. Employee and Management Information - As of June 30, 2023, the total number of full-time employees was 206, a decrease from 212 on June 30, 2022[41]. - Employee costs, including directors' remuneration, remained stable at RMB 15.5 million for the first half of 2023, compared to RMB 14.7 million in the same period of 2022[41]. - The total compensation for key management personnel increased to RMB 4,474,000 for the six months ended June 30, 2023, up from RMB 3,990,000 for the same period in 2022, representing an increase of 12.1%[160]. Research and Development - Research and development expenses for the six months were RMB 2,651,000, down from RMB 3,768,000, a reduction of 29.6%[99]. - Research and development expenses, including employee costs, amounted to RMB 2,651,000, down 30% from RMB 3,768,000 in the previous year[8]. Financial Instruments and Risks - The company has not established a foreign currency hedging policy despite facing foreign exchange risks due to revenue and procurement orders being denominated in currencies other than RMB[52]. - The management believes that the carrying amounts of the group's financial assets and liabilities as of June 30, 2023, and December 31, 2022, do not differ significantly from their fair values due to their immediate or short-term maturity[163].
捷芯隆(02115) - 2023 - 中期财报